Author: tfwee
FCOT – BT
Frasers Commercial Trust (FCOT) said on Tuesday that it is proposing to consolidate every five existing units in FCOT into one unit.
It believes that the consolidation will increase in the theoretical trading price of each consolidated unit as well as improve the market perception and attractiveness of FCOT and its units.
FCOT also believes that the consolidation will reduce the magnitude of volatility of its unit price and market capitalisation due to the minimum bid and ask spread.
AIMSAMPIREIT – SGX
Sale of 23 Changi South Avenue 2 Singapore 486443 above independently appraised value
- Sale price: S$16.7 million
- Book value as at 30 September 2010: S$16.2 million
- Sale expected to complete in January 2011
- Provides opportunity for future investment opportunities
- In the interim, net sale proceeds will be used to repay debt under the Trust’s newly established revolving credit facility, reducing aggregate leverage to approximately 33.4% from approximately 34.8%
- Continued execution of Manager’s strategy to maximise returns for unitholders
AIMS AMP Capital Industrial REIT Management Limited, the manager (the "Manager") of AIMS AMP Capital Industrial REIT (the "Trust") wishes to announce that HSBC Institutional Trust Services (Singapore) Limited, in its capacity as trustee of AIMSAMPIREIT (the "Trustee"), has today issued an option (the "Option") to Premier Land (East) Pte. Ltd. (the "Purchaser") for the sale (“Sale”) of 23 Changi South Avenue 2 486443 (“Property”) for a consideration of S$16.7 million (the "Sale
Consideration").
The book value of the Property is S$16.2 million based on an independent appraisal by CBRE as at 30 September 2010.
Principal terms of the Sale
The Purchaser has today paid to the Trust S$167,000, equivalent to 1.0% of the Sale Consideration, as a non refundable option fee. The Purchaser will pay S$1.5 million, equivalent to 9.0% of the Sale Consideration, on exercise of the Option on or before 16 November 2010. The balance of the Sale Consideration will be paid in cash on completion of the Sale, which is expected to take place in January 2011.The completion of the Sale is conditional upon, among others, the approval of JTC Corporation to the Sale.
Rationale for the Sale
The Sale is consistent with the Manager’s strategy of recycling the Trust’s capital to maximise returns for unitholders. The Manager adopts a proactive approach towards managing the Trust’s properties with a view to enhancing their quality and value. The approach includes identifying properties within the Trust’s portfolio which have reached the optimal stage of their life cycle for divestment. This allows the Manager to free up capital to provide the Trust with greater financial flexibility for future investment opportunities.
Use of Sale proceeds
The Sale proceeds, net of sale related costs, will be used to repay debt under the Trust’s newly established revolving credit facility, reducing aggregate leverage to approximately 33.4% from approximately 34.8%. This increased headroom will provide the Trust with greater financial flexibility for future investment opportunities.
Cambridge – BT
Cambridge Industrial Trust Management Limited, the manager of Cambridge Industrial Trust (CIT), said on Thursday that it intends to undertake an equity fund raising of about S$50.4 million to help fund the acquisitions of four properties.
It is planning a private placement of 56.50 million new units in CIT at an issue price of S$0.531 each to raise gross proceeds of about S$30.0 million.
It will also offer up to 38.48 million new preferential units in CIT on the basis of one preferential unit for every 25 existing units in CIT held on October 29, 2010. The preferential units will be priced at S$0.531 each to raise gross proceeds of up to about S$20.4 million.
The properties to be acquired comprise 25 Tai Seng Avenue, a 7-storey light industrial cum office building which was completed in 2009; two light industrial buildings at 511 and 513 Yishun Industrial Park A; a 4-storey factory and a built-to-suit project for lease, expected to be completed and operational in 2011.
The total acquisition cost is estimated around S$74.3 million.
CIT's manager intends to finance about S$48.6 million of the total cost with the net proceeds from the equity fund raising.
The balance S$25.7 million of the cost will be financed by a partial draw-)down of S$21 million under an existing acquisition term loan facility and existing cash of S$4.7 million.
The Royal Bank of Scotland N.V., Singapore Branch has been appointed as the sole global co-ordinator of the equity fund raising, and the sole bookrunner and underwriter for the private placement.
MIT – SGX
For Immediate Release
MAPLETREE INDUSTRIAL TRUST UNIT PRICE SURGED ON TRADING DEBUT
• Debuted strongly at S$1.15, representing an increase of 23.7% over the IPO Offering Price
• Closed at S$1.16, representing an increase of 24.7% over the IPO Offering Price
• Largest Singapore Real Estate Investment Trust IPO to-date
• Most active counter of the day with 345.0 million Units traded despite only three hours of
trading
Singapore, 21 October, 2010 – Mapletree Industrial Trust (“MIT”), a Singapore-focused real estate investment trust (“REIT”) and one of the largest landlords of industrial space in Singapore, enjoyed a strong trading debut at 2.00 p.m. today on the Main Board of Singapore Exchange Securities Trading Limited (the “SGX-ST”).
Raising gross proceeds of approximately S$1.19 billion from the offering of 594,913,000 Units to the public and under the placement tranche, as well as the Mapletree Cornerstone Subscription Units and the Cornerstone Units (as defined below), MIT is the largest Singapore REIT IPO to-date."
Excellent Debut
MIT’s units (“Units”) opened strongly at S$1.15 per Unit, a 23.7% increase over its offering price of S$0.93 per Unit (“Offering Price”). The Units reached an all-day high of S$1.20 per Unit, a 29.0% jump over its Offering Price. At the close of trading, the Units ended 24.7% higher than its Offering Price of S$0.93 at S$1.16 per Unit with approximately 345.0 million Units changing hands, making it the most actively traded counter on the SGX-ST today.
Commenting on the trading debut, Mr Tham Kuo Wei, Chief Executive Officer of Mapletree Industrial Trust Management Ltd, as manager of MIT (the “Manager”), said, “We are delighted with MIT’s excellent trading debut, which is a strong indication of the market’s confidence in the fundamentals and growth prospects of MIT.”
Overwhelming Response
The offering of 594,913,000 Units (the “Offering”), had earlier received overwhelming response with subscription rates of 27.7 times by retail investors (based on 80,645,000 Units and excludes the 25,500,000 Reserved Units) and 39.6 times by institutional investors (through the placement tranche comprising 488,768,000 Units).
The Sponsor1’s strong support of and commitment to MIT was demonstrated through its aggregate holding2 of 453,424,000 Units in MIT, which represents approximately 31.0% of the total number of Units in issue, with the over-allotment option exercised in full.
MIT had earlier secured prominent cornerstone investors such as Stichting Depository APG Tactical Real Estate Pool, American International Assurance Company Limited, Singapore Branch, American International Assurance Company (Bermuda) Limited, Henderson Global Investors, Columbia Wanger Asset Management, LLC, D.E. Shaw Valence International, Inc. and Prudential Asset Management(Singapore) Limited (acting for itself and on behalf of one or more investment funds and clients), who subscribed for an aggregate of 322,578,000 Units (the “Cornerstone Units”). These Cornerstone Units are also separate from the Offering.
Sabana REIT – BT
Freight Links delivers IPO with a difference
Logistics firm breaking new ground with $600m Islamic Reit due to list by year's end
(SINGAPORE) Freight Links Express Holdings expects to list Singapore's first Shari'ah-compliant real estate investment trust (Reit) worth about $600 million by the end of the year, sources close to the deal told BT yesterday.
The trust – which would hold about $850 million of Singapore industrial properties – is expected to be the world's largest certified Shari'ah-compliant Reit.
The three Shari'ah-compliant Reits now available in the region are all listed in Malaysia. They include Axis Reit, an office property trust that is currently the biggest listed Islamic Reit with a market cap of 812 million ringgit ($341.2 million).
The other two are Al-Hadharah Boustead Reit, which invests in plantation assets, and Al-'Aqar KPJ Reit, which focuses on healthcare assets.
Logistics company Freight Links, which owns 51 per cent of the Reit's manager, Sabana Investment Properties, said in a regulatory filing on Monday that it would subscribe up to 5 per cent of the IPO and invest as much as $30 million.
The other owners of Sabana Investment Properties are Blackwood Investment, which is run by private investors and owns 45 per cent of the trust, and Tarian Capital Partners, which owns 4 per cent.
BT understands that Singapore-incorporated Tarian Capital was formerly called Emirates Tarian, due to its links to Emirates Investments Group (EIG), a Dubai-based company known for glitzy property projects. EIG sold its stake in Emirates Tarian, which was renamed.
EIG, through the former Emirates Tarian, had its fingers in Singapore high-end property projects in recent years, including working with Ritz-Carlton to develop the Ritz-Carlton Residences.
Sabana Investment Properties, which was incorporated late last year, has been looking for warehouses to put into its portfolio since then, a source said.
Freight Links has already sold five properties worth $193 million to the Reit manager. The remaining properties for the trust – known as Sabana Reit – were acquired from various listed and unlisted parties.
These included Sim Lian Group, which said in May that it would sell properties worth $46.3 million to Sabana Reit. Soilbuild Group also sold the trust a warehouse in August for $60 million.
BT understands the listing is aimed at attracting funds from Middle Eastern investors, as few Shari'ah-compliant products are available.
One distinguishing factor of a Shari'ah-compliant Reit versus a conventional one is in having at least 95 per cent of the gross floor area of the properties adhere to Shari'ah laws, which prohibit any links with alcohol, tobacco and pork consumption, for instance.
This means that earnings generated from the 5 per cent of gross floor area of the warehouses not certified to be Shari'ah-compliant cannot be deemed for profit or distributed as dividends, and have to be given to charity.
Varying benchmarks are used by Reits to gauge the level of compliance, given differing schools of thought in Islamic teaching. Malaysia grants compliance if 80 per cent of the gross floor area follows Shari'ah law, sources said.
BT understands Sabana Reit is designed to meet stricter requirements expected in the Gulf region – to draw investors from that area.
The warehouses in the Reit are undergoing the final step in the certification process and are expected to meet compliance standards, BT understands.
The Reit also has to use Shari'ah-compliant banking and insurance products, given the different structure under Islamic finance. Under Shari'ah law, businesses cannot make money from interest fees, for example.
BT understands the upcoming listings of Global Logistic Properties and Mapletree Industrial Trust have helped boost confidence in the Sabana IPO, which has garnered strong interest from Middle Eastern investors. The Reit's roadshow is expected to start in November.
Shares of Freight Links surged 6.7 per cent or half a cent to end at eight cents yesterday in response to Freight Link's announcement made after the end of trading on Monday.
HSBC, Daiwa Capital Markets and UOB are joint book-runners for the Sabana IPO.